VOLUME 27 – BULLETIN #051
TO:
|
ALL CLEARING PARTICIPANTS
|
FROM:
|
CLIENT SERVICES AND SUPPORT
|
DATE:
|
September 20, 2007
|
SUBJECT:
|
Chicago Climate Exchange, Nitrogen Financial Instrument (Annual) Futures (NFI-A)
|
Chicago Climate Exchange (CCX), an all-electronic exchange, will trade the following futures contract that will be cleared by CCorp.
|
|
Nitrogen Financial Instrument (Annual) Futures
|
Exchange Code:
|
03
|
Product / Commodity Codes:
|
• Z2 – Vintage 09
• Z3 – Vintage 10
• Z4 – Vintage 11
• Z5 – Vintage 12 |
Contract Size:
|
1 U.S. EPA CAIR Annual NOx Emission Allowance
|
Quotation
|
U.S. Dollars
|
Minimum Tick Increment
|
$1.00 per ton = $1.00 per contract
|
Delivery Months:
|
Standard cycle:
Up to 5 annual December contracts starting with the December 2008 contract. CCFE may list any other calendar month contract off the standard cycle listing schedule through the last annual December contract.
|
First Trading Day:
|
The first trading day of a contract is the first business day following an expiration day.
|
Last Trading Day
|
The last trading day of a contract will be the third to last business day of the expiration month.
|
Deliverable Instruments
|
Environmental Protection Agency Clean Air Interstate Rule (“CAIR”) Annual NOx Emission Allowances equal to the contract size. The CAIR Annual NOx Emission Allowances acceptable for delivery are CAIR Annual NOx allowances having a vintage corresponding to the specified vintage of the product and CAIR Annual NOx allowances having a vintage of any year prior to the specified vintage.
|
Delivery Process
|
Clearing Participants and/or parties trading the market must have a CAIR Annual NOx Allowance Tracking System accounts established with the U. S. EPA. Delivery is a three day process consisting of Position Day, Notice Day, and Delivery Day.
Position Day:
The seventh trading day prior to a contracts expiration (expiration occurring after the close on the final trading day) is the first day Clearing Participants must report their long futures positions in the expiring contract. Clearing Participants holding shorts positions may submit tenders.
Notice Day:
Delivery assignments, and invoices are available to the clearing Participants
Delivery Day:
Clearing Participants must forward EPA confirmation to CSS for verification that delivery has been completed. Delivery proceeds will be released to the selling participant. EPA confirmations received prior to 12:30 p.m. CCorp will release delivery proceeds in the Mid-Day.
|
Trading Hours (CT):
|
7:00 a.m. – 3:00p.m. Central Time
|
Reportable Position Limits:
|
25 contracts
|
Nearby Expiration Month Speculative Position Limits:
|
5,000 contracts
|
Trade Management:
MQM add duplication messages will be sent to the Clearing Participants back office systems in the TREX record format. Clearing Participants may submit MQM change records to CCorp to change non-critical trade information, or mark a trade as a give-up. Clearing Participants can also mark trades as give ups via the CCorp Trade Management system. Current GAPI processing between CCorp and the Clearing Participant will be used.
Position Management:
Clearing Participants should submit open interest to CCorp, either by submitting an Open interest FTP file or using the web based Position Management System. Position Management also allows participants users to perform intra-day position adjustments and intra firm transfers. Below are the process and availability.
Process
|
Application
|
Available
|
DUE
|
Final Open Interest File Due
|
FTP Put
|
Anytime during current business day
|
8;00 p.m.
|
Final Open Interest
|
Position Management
|
7:15 p.m.
|
8:00 p.m.
|
Online verification of final open interest
|
Position Management
|
7;15 p.m.
|
8;00 p.m.
|
Adjustments to final open interest
|
Position Management
|
After end of day final processing
|
10;00 a.m. next business day.
|
Position Adjustments
|
Position Management
|
10;15 a.m.
|
7;00 p.m.
|
Intra-firm position adjustments
|
Position management
|
After end of day final processing
|
7;00 p.m.
|
Validation of Final Open Interest:
Participants can only submit one final position record by origin for each valid contract that it is currently trading in and/or holding positions in. CCorp will perform a maximum long and minimum long calculation for each final position reported. The calculation will be performed using the participant’s incoming prior day position, adjustments, current day’s buys, current day’s sells, transfers, exercises (if applicable), and deliveries (if applicable). If a participant’s submitted final position falls outside these calculated parameters, the final reported position will be in error. Participants have the opportunity to review and update errors prior to final processing, please refer to table above. If a firm fails to update an error, CCorp will adjust the final long position as close as possible to the firm’s reported position using the current day’s activity. Furthermore, CCorp will assume any activity in a contract that a participant does not report a final position in will be adjusted as closing positions. Additionally, futures created form option assignments will be considered closing positions.
Should you have any questions, please call or e-mail one of the following Client Services and Support Representatives:
|
Printer
Friendly Version